By Briana D’Andrea
The Royal Palm Beach Village Council approved a budget of $34.89 million for fiscal year 2014-15 at the first public budget hearing on Thursday, Sept. 4.
Vice Mayor David Swift noted that the operating millage rate necessary to fund the budget is 6.79 percent above the rollback rate of $1.798 per $1,000 assessed property valuation. However, the operating millage rate of $1.92 per $1,000 of assessed value is the same as last year’s rate.
“The total budget for the fiscal year is $34.89 million,” Finance Director Stan Hochman said. “This number is reflective of the changes we made at the July 17 workshop. The capital program has changed, moving $100,000 from 2017 back to next year, 2015. Additionally, you’ll see that the reserve requirement was reduced from $200,000 to $130,000. This was caused by a reduction near the budgeted line item for health insurance, which was a nice drop.”
General operating expenses make up 62 percent of the budget, with the remaining 38 percent split between the general capital, reserves, debt service and stormwater utility funds.
Royal Palm Beach property values are on the upswing, at a growth rate of more than 9 percent. The total property value of homes increased by $173 million over the past year. With the property tax rate unchanged at 1.92 mills, the village will still bring in more money next year due to the increased property values.
“I think the consensus is, the council is comfortable with keeping the millage rate flat, as opposed to reducing it,” Councilman Fred Pinto said.
Hochman noted that the revenue side of the general fund makes up $23.3 million, with property taxes accounting for 16 percent and other taxes and fees making up 25 percent of the general fund. Thanks to an increase in total operating revenues of 1.23 percent, eight new positions will be added.
The village will add a technician position in public works and engineering, six parks and recreation facility attendants and a general maintenance worker. However, four classroom instructor positions in parks and recreation will be deleted. Personnel services will account for 72 percent of expenditures, which include the village’s contract with the Palm Beach County Sheriff’s Office.
More than $955,000 is reserved for the stormwater utility fund, with 78 percent of that coming from fees and 22 percent from reserves. Under expenditures, 46 percent will go toward personnel services. “There were no position changes in the stormwater utility fund,” Hochman said.
More than $10.6 million is in the general capital improvements fund.
The council unanimously adopted the proposed tax rate of 1.92 mills for fiscal year of 2014-15.
The budget is slated for final adoption after the second budget public hearing Thursday, Sept. 18.
